Between the Lines

Larry Dignan, Andrew Nusca and Rachel King

iPhone 4: Apple raises the bar; AT&T pushes it back down

By | June 8, 2010, 3:00am PDT

Summary: Sure, the next-gen iPhone looks like a real winner, but three years after the first iPhone debuted, is AT&T still holding it back?

I’ll admit it upfront: I’ve already become an Android guy. I bought the Droid Incredible last month and, even with today’s release of the iPhone 4, I have no regrets about my purchase. With that said, if the iPhone 4 had been an option on the Verizon Wireless network a few months ago, I might have thought twice about my purchase - but not for the reasons you might think.

At yesterday’s keynote speech to announce the new iPhone, Apple CEO Steve Jobs spent the first 30 minutes talking about iPad, iBooks and the App store. Of course, the speech kicked off a developer’s conference so an extended update on the mobile app landscape was to be expected. And, iPad and iBooks are the latest darlings to come out of Cupertino, so that was no surprise either.

But none of that really impressed me. Thousands of apps? Blah blah blah. iBooks that sync to all of your devices for free? I would expect no less. One iPad sold every three seconds? I’m sure the guys on Wall Street are cheering about that. But those aren’t deal-breakers or deal-makers.

What did catch my attention were features like the Retina display, an enhanced resolution that went beyond raising the bar of visual clarity of both images and text. I was easily impressed when Jobs talked about the importance of photon capture over megapixels as a way of considering camera quality. And I was wowed by the demo of the Jenga game using the new Gyroscope feature - something that has the potential of opening the doors to new types of handheld gaming.

Finally, I have to admit that I was pleasantly surprised by the pricing of a device that Jobs seemed to be positioning as a premium, a notch (or two) above the competition that might be worth the extra few bucks, a la the Mac.

So, yeah, the iPhone 4 is a winner - nice new hardware design, as well as some cool stuff with the software, which we kind of already heard about back at the iPhone OS 4 event in April but is still impressive, nonetheless. But there was one major improvement that the iPhone needed and didn’t get in this new version - a new carrier in the U.S.

I know, it’s the same old song I’ve been singing for some time. In fact, in a post exactly one year ago today, I referred to AT&T as the iPhone’s anchor, holding it back from dominating the mobile landscape the way it did with iPods on the mp3 player shelves. And yet, one year after that post - and after three years of AT&T exclusivity - AT&T is still the butt of jokes, blog post headlines and now, even a talking point for Steve Jobs in interviews.

At the D8 conference last month, he said that AT&T has the fastest 3G network in the nation and that it’s getting better - but then paused to say that he also wishes it would get better faster.

At yesterday’s keynote speech, he emphasized that the video phone feature - called FaceTime Video Calling - is only for use over WiFi for now, saying, “We need to work a little bit with cellular providers.” And people chuckled. He also talked about the under-the-hood performance and the ability to process downloads of 7.2 mbps and uploads of 6.8 mbps. But then he paused to note that those speeds are theoretical because the carriers don’t support them yet.

D’oh!

The real winners out of yesterday’s news announcements are the current iPhone owners whose AT&T contracts are set to expire this year. Not only is AT&T allowing them to re-up their contracts for two more years so they can get discounted pricing today, it’s also allowing them to keep their unlimited data plans, which AT&T eliminated for new customers, effective yesterday.

That means they can check out the new Netflix app or place as many FaceTime video calls as they’d like without worrying about megabyte-overage charges. But new customers will fall under a new two-tiered pricing plan that caps customers at 2 GB per month and then starts tallying up overage fees after that.

In an earlier post, I wrote  that AT&T’s new data plans feel more like a company that wants to discourage usage rather than invest in it so it can support what Apple is envisioning. Apple is already making excuses about its new features being theoretical or WiFi only because the carriers aren’t ready for it.

Sounds to me like AT&T is stifling the iPhone, holding back Apple as it tries to innovate and raise the bar against the competition. The device is only as good as the service that powers it. And so long as AT&T is the only game in town, Apple can raise the bar as much as it likes - but AT&T will keep pushing it back down.

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Sam has been a technology and business blogger for more than 18 years.

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Sam Diaz has nothing to disclose.

Biography

Sam Diaz

Sam has been a technology and business blogger, reporter and editor at ZDNet, the Washington Post, San Jose Mercury News and Fresno Bee for more than 18 years. He's a member of the National Association of Hispanic Journalists and a graduate of California State University, Fresno.

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RE: iPhone 4: Apple raises the bar; AT&T pushes it back down
tomlin21-24319035676893835085146735905770 11th Oct
We had been executing a investigation and identified this webpage. I confess that this helpful post is on stage! Normally preserve it up. I'll be adhering to your nfl jerseys 2012 articles
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I would buy one, but as long as AT&T is the only carrier it is a BIG NO SALE. I might even be tempted to change to Sprint or Verizon(Assuming they did not cripple it)
@mrlinux iPhone is available on tmobile if you jailbreak it.
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@ricardoac
Yes but not 3G since they use different frequencies for data.

Also I would not get any carrier subsidies
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Well, other than the fact that without AT&T Apple never could have launched the original iPhone in the first place. And remember, according to the story Verizon had first crack at the iPhone... and turned education news and them down. k l
I got sick of the wait for the iPhone and just got the Android Incredible and LOVE IT. I'd NOT ever go to AT$T even if they gave me an about it is bank that website attacked from the site support from any soldier site to the light home page is great iPhone.
Apple is going to sell millions of iPhones in the first week it's on sale. The FIRST thing everyone is going to do is make a video call.
Don't pretend you are making an intelligent argument if you think all the networks COMBINED can handle the load of a million customers placing 3G video calls at the same time.
Apple has to think about scale and impact, which is apparently beyond the ken of the inflated egos of tech pundits.
Or if you think you're right that is is an ATT issue, why don't you get a statement fro Verizon that their network can handle a million video calls simultaneously.
Oh that's right Verizon doesnt have to ever worry about with selling a million devices of a smartphone during the first few weeks.
I'ts my understanding that if you get the new iPhone you have to switch to the new data plans.
For probabaly the first time Apple is bumping up against the rock MS has pushed for years, depending on another company (or companies) to be the point of delivery for their products and having to live within the limits / wishs of that company.
Apple's end to end control of their products and eco system simply will not work with a product that depends upon a "partner" and accept that while they may build a lot more features in such a product it doesn't mean it will get to the end user, much like the issues Microsoft had with "partners" building the first MP3 players based on Windows. Compare that to the sucess they had with the XBox when they had full control.
We often hear all the tech pundits talking about the future, the device centric world, always connected life style but the truth is, those things will only be allowed to happen if and when the service providers can handle it and of course find a way to make money from it. (Why spend billions if you can't find a way to make it pay back?)
If history is any indicator, the "pipe" has always lagged the possible and nothing I see indicates that will change for a very long time. What we see with the iPhone (and even the Android) being much more capable than the "pipe" is going to get worse (as more devices are sold) before it gets better.
@ricardoac You ridicule MS for not "comming out with things people want" or make jokes about the products they do, and yet you turn around an claim that these people fired are "just victims"?
So what you are comming straight out to say is that MS should keep the people that put out products that nobody wants to buy, right?
I am basing this on all of your past, and recent posts, so tell us why MS should keep people around that you claim have failed the company?
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@mikeismith Its been reviewed up and down the sohbet internet with almost everyone unanimously saying its the better chat phone. I've shown my Incredible to iPhone users and they have agreed its the better phone.

Its not Incredible to only the close minded. Its Incredible to anyone open minded enough to try it instead of doing what you have done....calling the forum iPhone better for no other reason than it being the iPhone sohbet odalar?
  • Flagged
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@mikeismith Well, other than the fact that without AT&T Apple never could have launched the original iPhone in the first place. And remember, according to the story Verizon had first crack at the iPhone... and turned them down pembe maske energy balance oyna oyunu moliva orjin krem tutune son nanomatik complex 41
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I was hoping that Apple had finally created an "iPhone" for Verizon customers. I will NEVER make the switch to AT&T because the service in the Pittsburgh area is awful. Most iPhone users around here opt to use the WiFi on the phone instead of AT&T's so called "3G." Now, with the data plan changes, Apple AND AT&T have really shot themselves in the foot.
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@dana.barger AT&T want you to use WiFi more so it frees up the network, so that can show improvement and sell more Iphones.. I would not get service with them if they gave me a $97 IPhone, some Walmart shopper will buy anything lol...
@dana.barger Its been reviewed up and down the internet with almost everyone unanimously saying its the better phone. I've shown my Incredible to iPhone users and they have agreed its the better phone.

Its not Incredible to only the close minded. Its Incredible to anyone open minded enough to try it instead of doing what you have done....calling the iPhone better for no other reason than it being the iPhone araba oyunlari
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I'm Waiting... Again!
tonyhunterajh 8th Jun 2010
No Verizon, No iPhone! I will stick with my iPod Touch and the Droid Incredible.
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@tonyhunterajh :No Verizon, No iPhone! I will stick with my iPod Touch and the Droid Incredible.

+1000

The longer Apple is stuck with ATT, the more Android gets a foothold that otherwise might not have existed.

Apple's exclusive with ATT will go down in computing history as one of the biggest mistakes ever made.
@kevindarling

I have to disagree. The iPhone would tax anybody's network and with the Apple business constraints.... ouch!
I agree that ATT should have improved quicker. I just don't see how Verizon's network would have been any better able to handle the exponential data load increase.

If I remember correctly, Apple first looked at Verizon for the iPhone and Verizon said "No".
@zenwalker

"I have to disagree. The iPhone would tax anybody's network and with the Apple business constraints.... ouch!...."

You make an interesting point. I wonder if the the iPhone was on another network if they would be experiencing many of the same issues people have complained about. Not that I am saying AT&T is partially at fault but it has been proven that some of those dropped call problems and other issues were the result of the Apple firmware was it not? I remember reading in the change logs about fixes relating to dropped calls, poor call signal/quality, etc.. So maybe the blame is shared a bit.

Not to mention no phone geared towards multi-media and entertainment has grown and been adopted so fast. I guess we will never know and I will say no cell phone provider is perfect and they can all claim that they could of "handled it" but somehow I doubt that is true.
@kevindarling
zenwalker is correct. Jobs even said ATT has more data traffic than all others in the U.S. combined. Verizon doesn't want the iPhone because they would have to start building more towers. Verizon is happy to have better phone to compete with the iPhone and not have to fork out billions to upgrade and expand their network. ATT can't just magically make towers appear. The more they build the more iPhones Apple sells. Eventually they will meet the demand. I don't have any issues with ATT. I am glad they took the leap of faith with Apple and they deserve a little sympathy for the situation they are in. It's the iPhone that is causing all the traffic issues, and Apple knows it.
To everyone below KevinDarling that thinks that the iPhone would cripple VZWs network: read this:

http://www.portfolio.com/companies-executives/2010/02/09/verizon-leads-att-by-billions-in-infrastructure-spending

I do believe that is the way to handle extraordinary amounts of data instead of paying an overweight Luke Wilson to tell me that I could get coverage all over America.
@kevindarling : "Apple's exclusive with ATT will go down in computing history as one of the biggest mistakes ever made."

Well, other than the fact that without AT&T Apple never could have launched the original iPhone in the first place. And remember, according to the story Verizon had first crack at the iPhone... and turned them down.

Also keep in mind that this is a problem with a definite end date, and is a U.S.-only issue to boot. Apple sells the iPhone worldwide.
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Verizon modernizes their network to allow voice and data at the same time.
@frgough Apple's exclusive with ATT will go down in computing history as one of the biggest mistakes ever made."

Well, other than the fact that without AT&T Apple never could have launched the original iPhone in the first place. And remember, according to the story Verizon had first crack at the iPhone... and turned them down.

Also keep in mind that this orjin krem is a problem with a definite end date, and is a U.S.-only issue to boot. Apple sells the iPhone worldwide
@frgough Apple's exclusive with ATT will go down in computing history as one of the biggest mistakes ever made."

Well, other than the fact that without AT&T Apple never could have launched the original iPhone in the first place. And remember, ac altin cilekcording to the story Verizon had first crack at the iPhone... and turned them down.

Also keep in mind that this is a problem with a definite end date, and is a U.S.-only issue to boot. Apple sells the iPhone worldwide
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Ouch!
Jeremy-UK 19th Jun 2010
@tonyhunterajh What you wrote might be the single most damning thing I've ever seen written about Android.

I'm not saying I agree or disagree, I've not spent enough "quality time" with Android to come to a judgment. But the simple fact that you carry another device who's feature set completely intersects with your phone seems to speak volumes.

I'm interested to hear what you think about the situation, is this as some think an opening for Android? Or is this just a "holding pattern" until either: AT&T get their junk together, OR Apple create a "Verizon iPhone"? Essentially where are you installing more Apps?
@Jeremy-UK "Apple's exclusive with ATT will go down in computing history as one of the biggest mistakes ever made."

Well, other than the fact that without AT&T Apple never could have launched the original iPhone in the first place. And remember, according to the story Verizon had first crack at the iPhone... and turned them down.

Also keep in mind that this is a problem with a definite end date, and is a U.S.-only issue to boot. Apple sells the iPhone worldwide.
I have been in the fortunate position of having worked in the USA Europe and Asian Mobile markets.
Let's be clear here the target audience of this device is not the USA or Europe it's Asia.
Why because countries such as South Korea and Japan have been at the leading edge of mobile technology and I'm not talking about handsets.
There are LTE networks in Asia and the USA has made huge leaps and bound having been way behind Asia and Europe.
The problem now being faced is greedy lazy mobilie operators.
Look at Europe there cost model is still based on voice calls (don't be fooled by the tariffs/plans) when they know full well that VOIP in the guise of skype provides FREE CALLS.
The same can be said of ATT and Verizon in the USA.
The ONLY way to get the highspeed bandwidth which these new generation of 'phones' is for a competitor. Or wait for years for LTE.
Alas we did have one it was killed off by Qualcomm when it bought out a WiMAX mobile.
Don't hold your breath for LTE and for Cellular/Mobile Operators to implement it.
They wont do a thing until they can see $ signs in it.
Sorry to be the merchant of doom but thats how these people think Nice handset ...shame about the network will be around for a few years yet
@Septimus01 What about Sprint's WiMax deal with Clear that gives them wide open bandwith..... Alowing voice and data at the same time.
@mikeismith

Hi,

Yes indeed BUT Qualcom vs Intel is at the basis of this battele....Many operators who hae spent huge sums on Qualcomm chip based technology (GSM HSUPA).
Would they willinglyswitch to Intel based (Wimax Mobile) tech ?
I suspect that the Wimax story will be limited to the backhaul in areas where fiber tech is not economic sense.
It may gain traction IF Laptops and IPAD like devices start putting them in.
In my view it's not an accident that Apple is snapping at the Operators with a 'get higher bandwidth or we'll start looking to put intel wimax chips in our devices' call.
Also in case the wider people reading this say that LTE and Wimax can live side by side it's naive at best.
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The VZW Argument again?
mrgoodall Updated - 8th Jun 2010
People why are you ignoring the 5000lb diamond encrusted elephant in the room? VZW is not capable of supporting the iPhone. You still cant talk and use data simultaneously on the VZW network. People talk multi-tasking this and that on a phone, but THAT IS the basis of business multi-tasking. As a mobile professional, on several occasions I have had reason to be reviewing a document that a client/colleague sent while on the phone with them. Or maybe its just better that I hang up, DL the document and call them back to discuss. Have VZW, and Sprint and whomever else address that, then we'll have something to talk about. For Sam Diaz to present himself as a subject matter expert on the issue and present his opinions without addressing this FACT sheds light on the true nature of Sam's ability as a journalist. Not a knock, just an observation.

It's similar to complaining that I cant play PS3 specific games on Xbox Live, differing architectures exist and blaming Sony for not providing their games on Xbox Live without addressing the architecture issue is just as fallacious.
@mrgoodall

This is by far an incorrect statement. In fact, AT&T releases an excuse saying that it has the most traffic and people eat it up. A quick google search on the subject reveals some interesting articles.

http://www.wirelessweek.com/News/2010/04/Carriers-Report-Carry-More-Data-ATT-Sprint-VZW/

Especially when you consider the largest draining devices: wireless cards for laptops.

I'm tired of people giving AT&T a pass because they cry about the iPhone.
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I have said it before
bobiroc 8th Jun 2010
but I guess I am fortunate because aside from a few minor issues the AT&T network has been pretty damn good to me. The only time I experience data slowness is in congested areas like I am at a ball game and 30,000+ are all using their phones around me. It used to be bad any time in the city but over the past year it has gotten better. I notice that my 3G coverage extends further outside the city/suburb limits than it did a year or 2 ago. And finally AT&T's customer service has always been excellent except for one incident.

I have friends and family that have Verizon, Sprint, and T-Mobile and they all get decent coverage but I see T-Mobile dropping a hell of a lot more calls that my AT&T and my brother's sprint phone does not work at my house which is only 25 miles out of the city. I used to have a nextel for work and that didn't work at my house either. My parents and sister have Verizon and they would be my second choice of carrier but like mrgoodall said I too frequently have someone on the phone while using the data network. Maybe it is the nature of my Job in IT and my boss (which uses his work sprint phone for everything) asked how he could do that on his TouchPro 2 and I told him he could not.
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AT&T is the 800-pound gorilla that's sitting on the IPhone, which is the reason why I will not be getting an IPhone 4 and continuing to use my jailbroken IPhone to tether my IPad and use its unlimited minutes.

If AT&T changes its tune (which I highly doubt) then maybe I will get one, but for now it's my 3GS until my contract runs out, then I'm switching to another carrier.

I shouldn't be punished for using available technology.
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Hear! Hear!
pairof9s 8th Jun 2010
I agree completely. To this day, 3 years after buying my iPhone, the AT&T phone service is my only real complaint about the unit. Luckily I use it for so many other tasks that I don't have to dwell on my phone calls being dropped or service being non-existent in unthinkable locations.

At this point, I'm very reluctant to upgrade to the iPhone 4, as great as it appears to be. It's in hopes that between now and next year when my current 2 yr AT&T agreement expires, Verizon will be an available carrier for Apple's phone.

/
@pairof9s
Don't be quick to judge. Do a bit of personal research.
I have and use both a 3GS and an Epix, both on ATT.
When I compare the two in connectivity and call quality I personally find the 3GS lags in the following:
1. Maintaining a connection. the 3GS drops 3x as many calls as the Epix.
2. The speaker on the 3GS is laughable. Especially for speakerphone use.
3. The number of bars displayed for signal strength. The 3GS will frequently show more bars than the Epix but will more frequently drop calls. Looks like th Epix display is more accurate.

Don't be so quick to dis ATT. There is a reason Apple majorly changed the antenna design.
@zenwalker

Quit making sense. You know some of these bloggers and posters are just here to spread FUD and cause tension. It is just a Company X vs Company Y pissing match most of the time. Facts are of no use.

Sure AT&T has some work to do on their network and I am sure a few balls were dropped but some here and claim that verizon or t-mobile is the messiah of cell phone service and I agree with you. I think that many of the so-called iPhone issues were caused by the phone itself and the software. I own an iPhone 3G and when I first got it with OS 2.x the reception was horrible and dropped calls galore. My wife's phone right next to me had full bars and clear calls. Magically a firmware patch comes out and it gets a bit better and to be honest it is pretty good now but when 3.0 first came out all the fixes in 2.x seemed to disappear. It is for that reason I am considering another phone type and has nothing to do with AT&T's network. In my area and the places I go to in my travels it has always worked well and I have been with them since they cellular one (in my area) through the Ameritech generation and Cingular generation.

At some point the almighty apple has to admit they are not infallible and sometimes Apple products do not work.
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Why is anyone surprised?
Stan57 8th Jun 2010
Why is anyone surprised? A carrier holding back a phone. Old news boys old news. Oh wait you thought because Apple made a phone things would start to be different?AHAHAHHAHAHAH.
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Don't get the ATT rips!
techboy_z 8th Jun 2010
It may be totally different in markets like SF & NY...but I've really not had any significant trouble with the service from ATT in the locations near me (Milwaukee & Chicago).

Is the network saturation really that different in SF & NY? Before getting my iPhone a few months ago, I had a Razr and VZ's service. Voice service was about the same. But I had data issues with VZ's "Mobile Web" too...and that didn't offer the features that the ATT/iPhone combo does. So I feel like ATT is doing a reasonable job, given that the occasional hiccup is not generally so preventative nor long-lasting, and I'm doing so much more with my iPhone than I could on the Razr/VZ combo.

Just not seeing it.
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ATT saw the iPhone4 coming
Ken_z 8th Jun 2010
which is, IMHO, the reason why they came out with their new terms.

I think we are moving to a point where Apple will open the door to a second carrier, causing ATT to get all the contracts signed that they can. With the 6 month "early bird special" we might be 6 months or less before we see the second carrier.

Then we'll see some interesting competition. More than two carriers and we'll see the competition go wild. happy
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New Apple Phone
dlwarre 8th Jun 2010
It is a great product, however it's still AT&T and a great phone with not so great service. I'll stick to my Droid which has eliminated my Iphone envy. Great phone/computer great service, Verizon.
What bar are they pushing down? ATT is over-saturated and building towers at a phenomenal rate. Verizon would be in the same boat, with less features (visual VM, talk and surf capability) if they had said 'yes' to the iPhone. But they didn't. They wanted control. ATT said 'yes,' and had no idea they were going to get flooded with data requests from a new phone from a brand new player. If you don't like ATT in your area, fine. My service is fantastic. But don't blame ATT. They are having to play catch up and they are doing so. Besides, if things were as bad as Verizon fans suggest Apple would not have allowed ATT exclusivity to the iPad for its data service. This column isn't being honest about the real issues here.
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RE: iPhone 4: Apple raises the bar; AT&T pushes it back down
tomlin21-24319035676893835085146735905770 11th Oct
We had been executing a investigation and identified this webpage. I confess that this helpful post is on stage! Normally preserve it up. I'll be adhering to your nfl jerseys 2012 articles

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